By Fatima Saka
President Bola Ahmed Tinubu has directed the National Assembly to explore strategies for selling Nigeria’s crude oil in the local currency, the naira, within the oil market.
This revelation came from Senator Mohammed Sani Musa, Chairman of the Senate Committee on Finance, during an interview with National Assembly correspondents after a closed-door session involving the finance minister, NNPC officials, and other stakeholders on Thursday in Abuja.
According to Senator Musa, President Tinubu’s directive emphasized the importance of utilizing the naira for crude oil transactions, especially now that refineries within Nigeria are operational.
“His Excellency, President Bola Ahmed Tinubu GCFR, has directed that, since we have functioning refineries in Nigeria, crude oil should be sold in our local currency, the naira,” he said.
The senator explained that while the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper approved for the 2024 budget were based on crude oil sales in dollars, there was a need to understand how the shift to naira-based sales would affect the economy.
“We want to clarify whether a different pricing strategy will be implemented, as this could imply a reintroduction of subsidies.
“It is important to note that the current administration’s policy is to completely withdraw subsidies,” he said.
Senator Musa assured that after discussions, it was made clear that selling crude oil in naira would not impact the exchange rate or foreign reserves, which are sustained by export revenues.
“Foreign reserves will remain unaffected as they are based on crude oil exports. Additionally, a portion of crude oil is always allocated for domestic consumption,” he noted.
The meeting also addressed various issues, including the status of both domestic and excess crude oil accounts. “We wanted detailed information on the balances and usage of these accounts,” Senator Musa said.
The committee further discussed funds from seized assets linked to criminal activities, questioning how proceeds are managed and who authorizes related expenditures.
Senator Musa confirmed that the finance minister provided a briefing on government efforts to curb inflation and tackle food security challenges, which are pressing issues globally and not just in Nigeria.
He concluded by reviewing updates on the performance of the 2024 budget as presented by the finance minister.
